#1
Which economic principle states that individuals make decisions based on maximizing their own self-interest?
Supply and Demand
Opportunity Cost
Marginal Utility
Rational Self-Interest
#2
According to the law of demand, what happens to quantity demanded when the price of a good or service increases?
Increases
Decreases
Remains constant
Fluctuates randomly
#3
Which economic concept is reflected in the idea that 'there is no such thing as a free lunch'?
Opportunity cost
Perfect competition
Income elasticity
Marginal utility
#4
In the context of market interventions, what does the term 'price ceiling' refer to?
A maximum price set by the government
A minimum price set by the government
A price determined by market forces
An equilibrium price
#5
According to classical economics, what is the role of government in the economy?
Active intervention to correct market failures
Minimal intervention, focusing on maintaining law and order
Central planning of the entire economy
Direct control of businesses
#6
What is the primary function of the Federal Reserve System in the United States?
Fiscal policy implementation
Monetary policy regulation
Tax collection
Social welfare programs
#7
What is the main goal of antitrust laws in the context of market structures?
To encourage monopolies
To prevent unfair business practices and promote competition
To regulate prices
To provide subsidies to businesses
#8
In microeconomics, what does the term 'externality' refer to?
The cost of production
A side effect or consequence of an economic activity affecting third parties
Market equilibrium
Consumer surplus
#9
What is the concept of 'elasticity' in economics?
A measure of the responsiveness of quantity demanded to a change in price
The total revenue of a firm
The percentage change in quantity supplied
The equilibrium price in a market
#10
Which economic theorist is known for the idea of 'creative destruction'?
John Maynard Keynes
Milton Friedman
Joseph Schumpeter
Adam Smith
#11
In macroeconomics, what is the purpose of the Consumer Price Index (CPI)?
Measuring the overall cost of living
Determining individual consumer preferences
Calculating the GDP of a country
Assessing international trade balances
#12
What is the primary function of the International Monetary Fund (IMF) in the global financial system?
Promoting international trade agreements
Providing financial assistance to countries facing balance of payments problems
Regulating global interest rates
Controlling inflation rates
#13
What is the purpose of a central bank's Open Market Operations (OMO) in monetary policy?
Controlling fiscal policy
Regulating interest rates
Managing exchange rates
Buying or selling government securities to influence the money supply